All Forum Posts by: Patrick Eldridge

Awesome thank you 

Hello all my wife and I are looking to move/invest in Hawaii. Does anyone know if there are Home Depot/Lowe’s liquidation auctions in Hawaii? These are auctions that sell returned items that can’t be resold in the stores. Its been a key success in our current market.

There’s other ways to keep costs down when doing a rehab. My wife and I are able to keep costs around 8-12,000$ per unit. We do everything in house and buy a majority of our materials at auctions that sell lowes/Home Depot returns. It’s materials that have blemishes that a home owner wouldn’t want and return but perfect for a rental. We watch the auctions weekly and snag up items for 5-20$ for kitchen cabinets, vanity’s, faucets, lighting and etc. we store everything in our warehouse. 

 Ya I agree I’d definitely start out with something less complicated. 

 Only way to grow faster is to learn how to do it yourself and become certified. We’ve acquired 32 doors in 2 years following the brrrrr method and doing everything ourselves. Having to pay contractor rates would cost too much.

 With permits, I’m a license/insured contractor/home inspector/hvac. I started learning everything 10 years ago and started with YouTube.

 Thank you! My wife manages all of our units while I do all of the rehabs. We net around 15k  a month after all expenses fully rented. We’ve been able to acquire so many in a short time because we found a way to fool the banks into financing our downpayment. We asked the bank if there’s a limit on commercial loans with sellers assist and they actually didn’t know because no one’s ever asked, they did some investigating and found out there isn’t. So my wife came up with inflating sales prices to maximize sellers assist. For example is the seller is asking 120k we’ll offer them 150k with 16% sellers assist. That’ll leave the seller with 123k and us 27k at closing for our downpayment and to sweeten the deal we waive inspections because I’m a licensed home inspector and check the key things before we do an offer. obviously don’t tell the bank what you’re doing because they don’t need to know more than the assigned sales price and sellers assist. Most of our loans are 15 year fixed rates but our goal isn’t to pay off the debt but to always leverage our assets to acquire more properties to increase our passive income and continue repeating the brrrr method.

I’ve gotten really good at separating utilities on the low end. Boilers are very simple with duplexes, just trace the lines in the basement to the one apartment and disconnect them. Then I wire up electric baseboard heating. Everything in on YouTube on how to do it. I use dual 20amp breaker with 12/2 wire and you can add up to 3840 watts per  20 amp breaker dual pull. The instructions come with the heaters how to wire them up. It just costed me 2500$ for 3 panels/wire/thermostat/heaters/etc and we paid an electrician to install a 3 gang meter base outside for 3000$.

You aren’t kidding I don’t miss handling 900 cases of soda  a day lol that’s awesome I can’t wait to be where that guy is!